Deepwater to fund shale and renewables…

From a great article in the $FT today:

For the Anglo-Dutch major, drilling far beneath oceans is essential for raising the funds for investments that will steer it through an uncertain energy transition.

“The responsibility deepwater has is to generate the cash that is going to pay for shales and for renewables,” said Wael Sawan, Shell’s head of deepwater exploration and production. “From 2020 we start to pay the bills for the organisation,” added Mr Sawan…

The company is banking on this new profit centre — alongside conventional fossil fuels, integrated gas and its refining arm — to cover the dividend, finance debt and pay for the investments that will future-proof Shell.

Likely to have made some shareholders in companies like Seadrill (shares down 23% in the last month) and Tidewater (shares down 27% in a fortnight) choke on their cornflakes this morning…,

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